BILL NUMBER: SB 1101	CHAPTERED  09/30/00

	CHAPTER   1080
	FILED WITH SECRETARY OF STATE   SEPTEMBER 30, 2000
	APPROVED BY GOVERNOR   SEPTEMBER 30, 2000
	PASSED THE SENATE   AUGUST 31, 2000
	PASSED THE ASSEMBLY   AUGUST 29, 2000
	AMENDED IN ASSEMBLY   JULY 6, 2000
	AMENDED IN ASSEMBLY   MAY 31, 2000
	AMENDED IN ASSEMBLY   AUGUST 26, 1999
	AMENDED IN ASSEMBLY   JULY 13, 1999
	AMENDED IN ASSEMBLY   JUNE 21, 1999

INTRODUCED BY   Senators Murray, Burton, Escutia, Hughes, Karnette,
Polanco, and Solis
   (Coauthors: Assembly Members Calderon, Cardenas, Cedillo,
Firebaugh, Floyd, Gallegos, Havice, Knox, Kuehl, Nakano, Romero,
Villaraigosa, Vincent, Wildman, and Wright)

                        FEBRUARY 26, 1999

   An act to amend Sections 130051.12 and 130110 of, and to add
Section 130051.24 to, the Public Utilities Code, relating to
transportation.



	LEGISLATIVE COUNSEL'S DIGEST


   SB 1101, Murray.  Transportation:  Los Angeles County Metropolitan
Transportation Authority:  transportation zones.
   (1) Existing law requires the Los Angeles County Metropolitan
Transportation Authority to establish retirement benefits for
employees in a bargaining unit represented by a labor organization in
accordance with a collective bargaining agreement.
   This bill would include in this requirement employees in any
organizational unit of the authority that is in a bargaining unit
represented by a labor organization.
   The bill also would require retirement benefits for employees of
the authority and any organizational unit of the authority in a
bargaining unit represented by a labor organization that was created
on or after January 1, 1999, for the purpose of representing
managerial employees or supervisorial employees, to be established
pursuant to a collective bargaining agreement between the authority
or any organizational unit of the authority and that labor
organization.
   (2) Existing law authorizes the authority, as the successor entity
to the Los Angeles County Transportation Commission, to establish
transportation zones, as defined, only in those areas where the
authority determines by a majority vote that the authority or the
included municipal operator cannot otherwise provide adequate and
responsive local transportation services in a cost-effective manner.
Existing law also requires the authority to establish organizational
units, including an organizational unit with the operating
responsibilities of the Southern California Rapid Transit District
relating to exclusive public mass transit guideway projects and the
operation of bus routes.
   This bill, as to any transportation zone, as defined, approved on
or after January 1, 1999, that assumes any of the operating
responsibilities of the district, as specified above, on or after
that date, would require the transportation zone to assume and be
bound by the terms and conditions of employment set forth in any
collective bargaining agreements between the authority and any labor
organizations affected by the creation of the transportation zone as
well as the duties, obligations, and liabilities arising from, or
relating to, labor obligations imposed by state or federal law upon
the authority, except as specified.
   The bill would require, for a period of 4 years, commencing with
the date of transfer of service by the authority to the
transportation zone, or at the expiration date of any collective
bargaining agreement that is in effect during that 4-year period,
whichever is later, that employees of the transportation zone,
together with like employees of the authority, constitute appropriate
collective bargaining units.  Upon expiration of the specified
period, employees of the transportation zone, at the option of the
transportation zone, would be authorized to constitute appropriate
collective bargaining units that are independent of the collective
bargaining units of the authority.
   The bill would require the authority to retain, for the period
specified above, the power of final approval of labor contracts
negotiated by it and the transportation zone with those labor
organizations representing collective bargaining units consisting of
both employees of the authority and the employees of the
transportation zone.  Upon expiration of the specified period, the
authority would have no final approval power over any labor contract
negotiated between the transportation zone and a labor organization
representing the employees of the transportation zone.
   The bill would require the transportation zone to maintain, as a
cosponsor with the authority, any retirement system established and
maintained as specified, until participation in the retirement system
or retirement benefits is modified under the collective bargaining
process.  The transportation zone would be authorized to appoint at
least one member to the retirement board of the retirement system.
   The bill would require the transportation zone to maintain the
health care provisions contained in any assumed collective bargaining
agreement, until those provisions are modified through the
collective bargaining process.  The bill would provide that the
transportation zone may not be held liable for financial obligations
to any health care provider that arose prior to the direct transfer
of employees from the authority to the transportation zone.
   The bill would specify that the transportation zone is not an
organizational unit of the authority.
   To the extent the provisions of this bill would impose additional
duties and responsibilities upon local governmental entities, the
bill would impose a state-mandated local program.
  (3) The California Constitution requires the state to reimburse
local agencies and school districts for certain costs mandated by the
state.  Statutory provisions establish procedures for making that
reimbursement, including the creation of a State Mandates Claims Fund
to pay the costs of mandates that do not exceed $1,000,000 statewide
and other procedures for claims whose statewide costs exceed
$1,000,000.
   This bill would provide that, if the Commission on State Mandates
determines that the bill contains costs mandated by the state,
reimbursement for those costs shall be made pursuant to these
statutory provisions.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:


  SECTION 1.  Section 130051.12 of the Public Utilities Code is
amended to read:
   130051.12.  The Los Angeles County Metropolitan Transportation
Authority shall, at a minimum, reserve to itself exclusively, all of
the following powers and responsibilities:
   (a) Establishment of overall goals and objectives.
   (b) Adoption of the aggregate budget for all organizational units
of the authority.
   (c) Designation of additional included municipal operators
pursuant to subdivision (f) of Section 99285.
   (d) Approval of final rail corridor selections.
   (e) Final approval of labor contracts covering employees of the
authority and organizational units of the authority.
   (f) Establishment of the authority's organizational structure.
   (g) Conducting hearings and the setting of fares for the operating
organizational unit established pursuant to paragraph (2) of
subdivision (a) of Section 130051.11.
   (h) (1) Approval of transportation zones.
   (2) In determining the cost-effectiveness of any proposed
transportation zone, the authority may not approve or disapprove a
transportation zone based upon consideration of rates of wages and
other forms of compensation or hours and working conditions of
employees of the proposed transportation zone.
   (3) Any determination of efficiencies that may be derived from the
approval of a transportation zone shall include consideration of
maintaining the prevailing rate of wages, hours, and other terms and
conditions of employment contained in current collective bargaining
agreements applicable to the authority as required under subdivision
(d) of Section 130051.11.
   (4) A proposed transportation zone is not required to demonstrate
lower operating costs than those of the existing operator or
operators of the service to be transferred to the zone, but shall
demonstrate that the net cost will not be greater than the current
service.
   (i) Approval of the issuance of any debt instrument with a
maturity date that exceeds the end of the fiscal year in which it is
issued.
   (j) Approval of benefit assessment districts and assessment rates.

   (k) Approval of contracts for transit equipment acquisition that
exceed five million dollars ($5,000,000), and making the findings
required by subdivision (c) of Section 130238.
  SEC. 2.  Section 130051.24 is added to the Public Utilities Code,
to read:
   130051.24.  (a) For the purposes of this section, the following
terms have the following meanings, unless the context requires
otherwise:
   (1) The "authority" is the Los Angeles County Metropolitan
Transportation Authority.
   (2) A "transportation zone" is a public agency or a public benefit
corporation of which public agencies are the sole members
established on or after January 1, 1999, that assumes any of the
operating responsibilities described in paragraph (2) of subdivision
(a) of Section 130051.11 on or after that date, regardless of whether
the transportation zone is an included municipal operator, as
defined in Section 99207, or an included transit district, as defined
in Section 99208.
   (b) (1) Except as authorized under paragraph (2), a transportation
zone shall assume and be bound by the terms and conditions of
employment set forth in any collective bargaining agreements between
the authority and any labor organizations affected by the creation of
the transportation zone as well as the duties, obligations, and
liabilities arising from, or relating to, labor obligations imposed
by state or federal law upon the authority.
   (2) Notwithstanding paragraph (1), if the authority is engaged in
collective bargaining with labor organizations representing employees
who are subject to transfer to the transportation zone between the
date of approval of the transportation zone and the date of the
transfer of service to the transportation zone, the authority may
consult with the transportation zone regarding matters within the
scope of labor representation.
   (c) (1) For a period of four years, commencing with the date of
transfer of service by the authority to the transportation zone, or
at the expiration date of any collective bargaining agreement that is
in effect during that four-year period, whichever is later,
employees of the transportation zone, together with like employees of
the authority, shall constitute appropriate collective bargaining
units.  However, the transportation zone may be a separate employer
for other purposes.
   (2) Upon expiration of the period described in paragraph (1),
employees of the transportation zone, at the option of the
transportation zone, may constitute appropriate collective bargaining
units that are independent of the collective bargaining units of the
authority.
   (3) If independent bargaining units are established as authorized
under paragraph (2), the transportation zone may enter into
agreements with labor organizations as a separate employer, regarding
wages, benefits, and other terms and conditions of employment.
   (4) The transportation zone shall maintain single employer
collective bargaining units for transportation operations and
maintenance employees.  Those bargaining units shall contain
classifications for employees that are identical to those that
existed for the joint collective bargaining units of the authority
and the transportation zone under paragraph (1), unless modified by
mutual agreement between the transportation zone and the affected
labor organizations.
   (d) (1) The authority shall retain, for the period described in
paragraph (1) of subdivision (c), the power of final approval of
labor contracts negotiated by it and a transportation zone with those
labor organizations representing collective bargaining units
consisting of both employees of the authority and the employees of
the transportation zone.  However, the authority may not grant any
final approval of a labor agreement unless it has first consulted
with the transportation zone.
   (2) Upon expiration of the period described in paragraph (1) of
subdivision (c), the authority shall have no final approval power
over any labor contract negotiated between a transportation zone and
a labor organization representing the employees of the transportation
zone.
   (e) (1) A transportation zone shall maintain, as a cosponsor with
the authority, any retirement system established and maintained under
subdivision (b) of Section 130110, until participation in the
retirement system or retirement benefits are modified under the
collective bargaining process.
   (2) The transportation zone may appoint at least one member to the
retirement board of the retirement system.  If the size of the board
is increased pursuant to this section, an equivalent number of
representatives of the labor organization representing the employees
shall be appointed to the board to ensure that the board maintains an
equal number of employer and labor organization members.
   (3) Prior to the transfer of any service to a transportation zone,
the plan administrator for the retirement system shall permit the
transportation zone to perform an actuarial financial examination of
the assets and liabilities of the retirement system and the benefits
accrued under it.
   (4) The liability of the transportation zone for obligations under
the retirement system shall be limited to benefits accruing to
employees of the transportation zone.
   (f) (1) The transportation zone shall maintain the health care
provisions contained in any assumed collective bargaining agreement,
until those provisions are modified through the collective bargaining
process.
   (2) The transportation zone may not be held liable for financial
obligations to any health care provider that arose prior to the
direct transfer of employees from the authority to the transportation
zone.
   (g) Labor relations in a transportation zone shall be governed
under Article 10 (commencing with Section 30750) of Chapter 4 of Part
3 of Division 10, except that whenever a duty or power is imposed
upon or granted to the authority under those provisions, the duty or
power, for the purposes of this section, shall be deemed to be
imposed upon or granted to the transportation zone as well as the
authority.
   (h) Nothing in this section prohibits a transportation zone from
contracting for managerial services that are not provided by any
classification of any bargaining unit.
   (i) A transportation zone is not an organizational unit of the
authority.
  SEC. 3.  Section 130110 of the Public Utilities Code is amended to
read:
   130110.  (a) For employees of the Los Angeles County Metropolitan
Transportation Authority not in a bargaining unit represented by a
labor organization, the authority shall establish retirement benefits
pursuant to Article 1 (commencing with Section 30400) and Article 2
(commencing with Section 30430) of Chapter 4 of Part 3 of Division
10.
   (b) Retirement benefits for employees of the authority and any
organizational unit of the authority in a bargaining unit represented
by a labor organization shall be established pursuant to Article 3
(commencing with Section 30450) of Chapter 4 of Part 3 of Division
10.
   (c) Retirement benefits for employees of the authority and any
organizational unit of the authority in a bargaining unit represented
by a labor organization that was created on or after January 1,
1999, for the purpose of representing managerial employees or
supervisorial employees, shall be established pursuant to a
collective bargaining agreement between the authority or any
organizational unit of the authority and that labor organization.
  SEC. 4.  Notwithstanding Section 17610 of the Government Code, if
the Commission on State Mandates determines that this act contains
costs mandated by the state, reimbursement to local agencies and
school districts for those costs shall be made pursuant to Part 7
(commencing with Section 17500) of Division 4 of Title 2 of the
Government Code.  If the statewide cost of the claim for
reimbursement does not exceed one million dollars ($1,000,000),
reimbursement shall be made from the State Mandates Claims Fund.
